Almost no one gets through life without a few unexpected twists. Setting aside money for healthcare costs can help ease your mind and your wallet.

A Health Savings Account [1] (HSA) is a tax-advantaged savings account designed to help you pay for medical expenses such as doctor visits, prescription drugs, and dental/vision care. You can open an HSA if you’re enrolled in a high-deductible health plan (HDHP).

While high deductibles mean higher out-of-pocket costs, your HSA contributions and withdrawals for eligible expenses are tax-free — which can help save you money in the long run.

  • HSAs let you pay for qualified medical expenses using pre-tax income, helping reduce your out-of-pocket costs.
  • Unlike flexible spending accounts (FSAs), your HSA stays with you, even if you change jobs.
  • You must be enrolled in a high-deductible health plan to qualify for an HSA.

Advantages of an HSA

HSAs offer flexibility and valuable benefits compared to other savings options.

Pay for Many Types of Medical Expenses:
Use your HSA to cover copays, coinsurance, and expenses not covered by your plan, including vision and dental care, prescription drugs, qualifying over-the-counter health items. HSAs can also be used for certain insurance premiums like Medicare premiums (if you’re 65 or older).

Enjoy Tax Advantages:
Your contributions are made pre-tax, reducing your taxable income. For instance, if you earn $70,000 and contribute $5,000 to your HSA, you’ll only owe taxes on $65,000 that year — saving you money come tax time. Consult your tax advisor.

Your HSA at Beacon Credit Union

With a HAS through Beacon, you’ll enjoy:

  • Convenient debit card access for eligible purchases
  • Free bill payment service for medical expenses
  • Monthly compounded interest to help your savings grow
  • Multiple funding options — ACH, transfer, or check

Want to learn more?
See HSA Frequently Asked Questions here
Learn more details about HSAs by clicking here

[1] Minimum balance $25 to avoid a service fee.